Market Watch: Bourse falls to four-month low

KSE’s benchmark 100-share index declines 21 points.


Express January 12, 2012

KARACHI: Stocks fell to a four-month low on Thursday in thin trade as investors stayed cautious following growing tensions between the government and the army.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.2 per cent or 21.37 points to end at the 10.909.12 point level, its lowest closing since August 29.

President Asif Ali Zardari left for Dubai on a scheduled one-day trip on Thursday as the political arena witnessed growing tension over the alleged memo seeking US help in preventing a coup by the military.

Trade volumes fell to an even more dismal level of 21 million shares compared with Thursday’s tally of 23 million shares.

National Bank of Pakistan traded in the red on news reports that State Life Insurance, the country’s largest state owned insurance company, will likely withdraw term deposits from worth Rs4 billion from the country’s largest bank, said Elixir Securities equity dealer Faisal Bilwani.

The amount is insignificant given the bank’s size, however the news reignited investors’ fear of bad loans and mismanagement possibly hurting bottom-line, added Bilwani. The bank’s scrip fell 2.5% to close at Rs41.81.

Fauji Fertilizer Company traded against the broader market direction as market bets on higher payout in the coming annual earnings announcement.

The market is expected to remain dull ahead of the weekend with Monday being a crucial day to future political direction as Supreme Court hears both NRO and Memogate cases, said Bilwani.

Fauji Fertilizer Bin Qasim was the volume leader with 2.67 million shares declining Rs0.08 to finish at Rs43.29. It was followed by National Bank of Pakistan with 1.97 million shares falling Rs1.07 to close at Rs41.81 and Faima Fertilizer Company with 1.91 million shares gaining Rs0.13 to close at Rs22.96.

Foreign institutional investors were buyers of Rs56 million and sellers of Rs37 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 13th, 2012.

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